In order to make a space industry economic, a reliable extraterrestrial source of oxygen must be identified for immediate use. Lunar ilmenite has recently been considered as a candidate for such a resource. Reducing ilmenite with hydrogen by conventional methods produces a synthetic rutile and water, but only recovers about 30% of the available oxygen. At high temperatures, such as those of a plasma, a much greater percent of the oxygen is dissociated from the titanium. A continuous process involving some form of plasma reduction, a solid-gas separation, electrolysis of the water formed, and recycling the process gases can then be developed.